WPCNR SCHOOL DAYS. By John F. Bailey. November 14, 2006: The Board of Education approved $1,961,955 in certiorari tax refunds Monday evening, consisting of a $620,034 payback to The Winter Organization, owners of 81 Main Street, and to Sears for their 275 Main Street property in the amount of $892,751 for the tax years 1999-2003 and $449,170 for tax year 2004-2005. The amount will be paid out of the $8,000,000 certiorari bond floated October 2.
This is in addition to the $2,415,280 in certiorari approved for The Cameo House ($100,756), Gateway 1 Group ($662,097) and Macy’s East ($1,652,427) approved previously to be taken out of that bond. (The $1.65 Million to Macy’s is about $400,000 less than WPCNR had estimated when the city approved their certiorari agreement).
The School Board entertained preliminary discussion of the 2007-2008 budget, expressing the need for cost-cutting.
Les Storch, representing Bennett Kielson Storch DeSantis,the auditors of the district presented the annual report of the City School District for the fiscal year ended June 30 and reported a $5.5 Million surplus. This surplus was due in part to a $1.6 Million unanticipated increase in collections of Utility Taxes and a $700,000 increase in interest plus the fund balance from last year. The increased income was due to higher interest rates, resulting in a fund balance of $8 Million, allowing the district an “undesignated fund balance” of $3,066,000. Storch said the district has earmarked $2.6 Million of that for future certiorari payments, or slightly less than 2% of the school district budget, the maxium percentage the school district is allowed to hold in anticipation of certiorari paybacks.
Budget Consternation
On the Board’s discussion of the 2007-2008 School Budget, Board members Terry McGuire and Donna McLaughlin supported close scrutiny of the effectiveness of school programs in deciding whether existing programs would be continued – McLaughlin suggested new programs only be initiated to “substitute” for programs not in addition.
Board President Michelle Tratoros said the district should look closely at cutting administrative staff to affect savings, not teaching staff. Peter Bassano said the closeness of the capital project vote required conservative budget construction. “We need to be vigilant with this budget. We need to be very creative. I can’t imagine the District is going to submit a budget that looks like this year’s budget.” Bassano, in addition, said he feared to see the increase in the Transportation Budget.
Bill Pollak, another Board member demurred, saying the annual budget vote was “not as passionate. Every year, the budget passes. End of story. The bond vote does not necessarily indicate we won’t get the same positive support we get in the budget process.”
Superintendent of Schools Timothy Connors agreed the bond vote was different from the budget vote, and said that White Plains has always supported and demanded quality education, low class size and supported the school budget.
Calling ABC Members.
Donna McLaughlin urged the Superintendent of Schools Timothy Connors to bring the Annual Budget Committee into the process earlier. Connors said he would be putting together the Committee of some 30 to 40 persons over the next month, saying he had already gotten persons calling Michele Schoenfeld, Clerk of the District, wishing to serve on the Committee.
Connors cautioned though, said the ABC Committee is “advisory” – that they do not decide on what the budget will be, but have the opportunity to “advise” the District on what they should do. Not decide. McLaughlin, suggested that terms on the Annual Budget Committee should be limited to three years, rather than the same persons serving year after year.
Connors said he would consider term limits on the ABC. He also said the committee would be formed in December and brought in when the budget is being developed in its preliminary stages in January.
Unions Await in Wings
No mention was made by any Board member on negotiations with the White Plains Teachers Association, The Civil Service Employees Association and the Administrators and Supervisors Association. Representatives of all three unions were at the meeting last night, but did not speak. WPCNR asked the Superintendent of Schools about the status of the negotiations, and he said it was too early for that, that negotiations had not begun.
Jerry Gorski, President of the Teachers Union, in attendance last night, told WPCNR today that by law the union did not have to present their positions to the School District until February. He said the union would be surveying its members beginning in December on contract issues. Results would be tabulated and from those findings, “positions” would be developed.
Asked if the union would be taking into consideration the accelerated pace of district expenses (The budget is $165.8 Million in 2006-2007), Gorski said “We’re looking for a fair contract that will benefit the teachers and the school district.” Asked if the union would look at paying more of its health benefits, as they agreed to do for the first time three years ago in negotiating the present contract, Gorski said “he was open to everything,” but could not address the giveback question until he saw what the school district was “looking for.” He said that in the last contract that found the union agreeing that individual members would pay $450 a year share in medical benefits and $950 for a family plan – the first time they had had to pay for health benefits.
Gorski appeared firm on retiree benefits, because he felt retirees were “less able”not in as good a position to absorb cuts in benefits as were presently active employed members.
Asked for a feel of what his union would seek in salary increases, Gorski said that in surveying other teacher organizations around the area, their increases have ranged 3.5% and up. The city awarded its police, fire, teamster, and civil service unions 4% raises three years ago through 2008.
Budget Trend Line
The school budget at $165.8 Million in 2006-2007 and has grown $86.4 Million from $89.4 Million in 1995-96. That is an increase of 86% in a decade when inflation has risen 26%. To finance this growth and the recent declines in city commercial assessments, the school district has increased Mr. and Mrs. White Plains school taxes 92%. From $202.91/$1,000 of assessed valuation(1995-1996) TO $449.64/$1,000 in 2006-2007.
In a projection issued February 27, the school district predicted it will spend $178 Million in 2007-2008. Now let’s take this into 2008-2009. The School District Salaries, according to the Assistant Superintendent for Business office last spring will hit the $104 Million mark in 2008-2009, with fringe benefits hitting $42 Million, and the rest of the budget based on conservative 3% inflation will put the 2008-2009 budgets at $189 Million.
However the district 2008-2009 projection appears understated, because it assumed a 5% per annum increase and 6% per annum increase in transportation and utilities — both sure to escalate with the unforeseen escalation in fuel costs in recent months.
The 2008-2009 projection is a very generous budget prediction on debt service. The $189 Million 2008-2009 “Budget” lists debt service with no allowance for new certioraris in 2008-2009, and leaving out any mention of the capital improvements bond issue just passed.
The School Budget will break $200 Million in two years.
The school debt service would climb from approximately $6,000,000 in 2006-2007 to 10.6 Million in 2008-2009 if the school district floated the full $66.7 Million bond. That adds $4 Million to the $189 budget, lifting it to a minimum $193 Million in two years. This does not include any new certioraris the school district does not know about.
It is not inconceivable that year-to-year expenses will bring additonal budget increases well beyond those February 2006 projections that will kite the 2008-2009 budget over $200 Million.
It is interesting to note that if that happens the budget will go from $165.8 Million this year (2006-2007) to $200 Million in two years.
The School Budget is compounding at about $15 Million a year, so if you take that “automatic” into play without budget cuts, the price tag for education in White Plains should reach $180 Million in 2007-2008, and $195 Million in 2008-2009 without any increases in any expense areas.
